IMF Approves $139 Million Disbursement to El Salvador Amid Bitcoin Purchase Waiver

Huoxing Finance reports that on October 2, according to Reuters, the International Monetary Fund (IMF) approved a $139 million disbursement to El Salvador, following a waiver granted for the Salvadoran government’s violation of conditions restricting further Bitcoin acquisitions. The IMF Executive Board completed the second and third reviews of El Salvador’s $1.4 billion Extended Fund Facility (EFF), enabling immediate release of the funds. The IMF stated that El Salvador’s economic performance exceeded expectations, driven by improved security conditions and enhanced investor confidence. The IMF noted that some performance criteria, including those related to Bitcoin holdings, were not met. However, after El Salvador implemented strong corrective measures and reaffirmed its commitments, the IMF approved the waiver. In September, IMF staff indicated that documents provided by El Salvador showed that the additional Bitcoin acquired after the first review originated from private donations, not public funds. The IMF also noted progress by El Salvador in anti-money laundering measures, fiscal transparency, and transferring majority ownership and control of the state-owned digital wallet Chivo to private operators.